B2B2C business model in Lending
Running a successful business is no easy feat, and there are many factors that can hinder its success. In the lending industry, this is especially true, with a crowded market and ever-changing customer expectations. To maintain a competitive edge and continuously grow, businesses must explore innovative solutions and models that can help them acquire new customers in a sustainable and scalable way.
B2B (business-to-business) and B2C (business-to-consumer) are two common models used to describe how companies sell their products or services. B2B refers to a model where businesses sell their products or services to other businesses. In terms of lending, this could mean that a lending company provides their lending solutions to other businesses, such as banks or financial institutions, who then offer those solutions to their customers (individual borrowers). This model is popular in the tech industry, where companies offer software or other tech solutions to help businesses improve their operations or infrastructure. Custom solutions tailored to individual business needs are also common in the B2B tech space.
On the other hand, B2C refers to a business strategy where companies sell their goods or services directly to individual customers. In terms of lending, this could mean that a lending company provides their lending solutions directly to individual borrowers, without the involvement of any other business. Businesses that use the B2C model prioritize creating products that are easy to use, feature appealing design and marketing, and gather customer data to enhance their offerings.
What is B2B2C Business Model?
  • Now, let's talk about the B2B2C model in the lending industry. This model involves lending companies collaborating with other businesses (B2B) to offer their lending solutions to individual borrowers (B2C). For example, a lending company may partner with a provider to offer lending solutions to its customers. The provider benefits from offering additional lending services to their customers, improving their customer experience and loyalty, while the lending company benefits from reaching a larger customer base and reducing operational costs and risk.
  • The B2B2C lending model can also help lending companies develop more innovative lending solutions, knowing that their partner businesses are responsible for delivering those solutions to their customers. This allows lending companies to focus on their core competencies and choose efficient product development solutions catering to that specific niche while leveraging their partner businesses' existing customer base and marketing efforts.
  • Furthermore, the B2B2C lending model can help to reduce operational costs and risk for the lending company, as it doesn't have to directly manage customer relationships or marketing activities. It also enables lending companies to focus on developing/ sourcing innovative lending solutions and improving their services, knowing that their partner businesses are responsible for delivering those services to their customers.
How do lenders use the B2B2C model to enrich provider's and borrower's experiences?
For providers:
  • The lenders provide providers with the opportunity of increasing the purchasing power for the customers by catering to the customer base who require loans right from the provider's portal for convenience
  • Providers get a boost of sales through lenders by adding a lending feature as a form of payment, but they are liable to limited risk as the lender is responsible for the background check, KYC, and underwriting and bares all the risk if the loan isn't repaid leaving provider with higher sales and minimal/no risk.
  • Loan finance process options can be quickly and easily integrated into a provider's existing checkout process. The lender takes care of the complex backend processing and approvals as the provider acts as an intermediary.
  • Lender typically offers a user-friendly interface that is easy to navigate and understand for both the provider and the consumer. The interface can also be customized to fit the look and feel of the provider's website or app.
  • The lender minimizes/eliminates the need for the provider to employ staff to manage financing operations. This saves time and money, as the third-party provider takes care of all the backend processes, from processing applications to manage repayments.
For borrowers:
  • A B2B2C lending model can help the borrowers in reducing the middleman and directly apply for a loan and choose the provider of the service/ product or choose the provider and directly seek a loan through them.
  • The lenders make the entire process too efficient and easy for borrowers which saves them time and resources. No more waiting in lines for hours or submitting hundreds of documents with the aspiration to get your loan approved.
  • Instead of waiting for days to get your loan to process and verify your profile, lenders with digital solutions make the decision in a few seconds.
  • A seamless lending process can offer customers greater flexibility in terms of loan amounts, repayment terms, and other features. This means that customers can find a financing solution that meets their specific needs and budget.
  • Lenders provide customers with greater transparency in terms of fees, interest rates, and repayment schedules. This allows customers to make informed decisions about their financing options and avoid hidden or unexpected costs.
How do you start with your B2B2C lending business?
  • At theecode, we recognize the potential of the B2B2C lending model and offer solutions that can help lenders succeed in this space. We provide lenders with a specialized lending platform that can be customized to meet their business clients' and end consumers' specific needs.
  • Our product enables lenders to offer loans or credit to businesses, who in turn can use the funds to offer loans or credit to their customers. This enables businesses to offer financing options to their customers, thereby improving customer loyalty and increasing sales.
  • In addition, theecode provides lenders with data analytics tools to help them assess the creditworthiness of potential borrowers and make informed lending decisions. This can help lenders mitigate risks associated with lending to businesses and consumers. Theecode simplifies the process of reporting and analyzing loan applications for lenders, providers, and borrowers by providing comprehensive information that is easily accessible and organized, facilitating documentation and tracking.
“One size doesn't fit all.”
At Theecode we have a hybrid approach to this famous saying and which is why we are among the leading Hybrid SaaS lending solution providers. We offer specific solution products tailored to your niche while also constructing a common sandbox that seamlessly fits into the vertical. We have identified several top verticals with outstanding lending opportunities and developed a customized, free-to-access sandbox for you to test before committing to the lending business.
  • Automobiles lending solutions
    • The automotive industry is experiencing a significant shift in revenue streams, with on-demand mobility services and data-driven services diversifying the market and creating new opportunities. This change could generate up to $1.5 trillion in additional revenue potential in 2030, representing a 30% increase from traditional car sales and aftermarket products/services. The growing demand for electric vehicles is also contributing to the expansion of the global automotive finance market, which was valued at USD 259.84 billion in 2022 and is expected to register a compound annual growth rate (CAGR) of 7.3% from 2023 to 2030.
    • However, for many individuals, the traditional lending process can be a barrier to owning a car. The tedious paperwork, collateral requirements, lengthy loan approval times, and high-interest rates can make the process overwhelming and take away from the joy of this significant milestone. In the US, Experian's State of the Automotive Finance report highlights that the growing demand for electric vehicles is driving market growth, with new electric vehicle financing increasing from 1.34% in Q4 2019 to 4.56% in Q4 2021.
    • At Theecode, we understand that owning a vehicle is more than just transportation; it's a symbol of your achievements and a lifelong dream for many. That's why we offer hassle-free lending solutions to lenders that make it easier for borrowers to purchase the vehicle they want.
    • Our technology solution for lenders provides efficient auto financing, prioritizing convenience. We streamline the lending process, allowing borrowers to apply for loans, receive offers within seconds, and sign documents digitally. Lenders disburse funds to providers, and borrowers pay back loans in instalments with interest to lenders. With us, one can experience the joy of owning a vehicle without the stress of a complicated lending process.
    • Theecode makes a B2B2C model in automobile lending a WIN- WIN -WIN model.
  • Healthcare lending solutions.
    • We've all heard the saying "Health is Wealth," but sometimes unforeseen accidents or a lack of prioritization can leave us in a situation where we require medical attention. However, medical bills can be exorbitant, and while medical insurance covers many essential health alignments, it may not cover certain clinical surgeries like dental, plastic, eye, cosmetics etc.
    • Overall, the healthcare industry is expected to reach $11.9 trillion by 2025, and healthcare lending is a critical component of this growth. The global healthcare lending market is projected to reach $372.7 billion by 2028. Healthcare lending enables patients to access medical treatments they might not have been able to afford otherwise, and partnering with lenders can help healthcare providers drive revenue growth and improve patient outcomes.
    • Theecode offers a customized solution for healthcare providers that allows them to offer on-site loan applications to patients, which can be approved and processed within minutes. This helps patients afford necessary medical treatments and can increase sales for healthcare professionals, while also allowing lenders to expand their customer base and disburse more loans.
    • Our product offers user portals for lenders, providers, and borrowers, loan dispersal methods, and loan initialization, with a health vertical sandbox that provides free access to explore lending in the health domain. Our solution is designed to provide a streamlined and convenient lending process, benefiting all parties involved.
  • Solar installation lending solutions
    • In 2021, the global solar energy systems market size was valued at USD 160.3 billion. It is expected to grow at a compound annual growth rate (CAGR) of 15.7% from 2022 to 2030.
    • The increasing use of solar panels in the European region, particularly in countries like Spain and Italy, which receive maximum sunlight exposure throughout the year, is expected to drive the market. The U.S. emerged as the largest market for solar PV panels in North America in 2021.
    • These numeric data points highlight the significant growth potential of the solar energy market, particularly in the coming years. As the demand for sustainable energy production sources continues to grow, so does the demand for solar energy systems and solar PV panels. The declining costs of solar energy systems, combined with their competitive nature in the energy generation industry, are further fueling this growth.
    • At Theecode, we are dedicated to crafting a streamlined B2B2C process that delivers lenders an exceptional and seamless interface, connecting all involved parties. Our state-of-the-art technology solutions facilitate solar installation providers to extend loans to their customers, thereby boosting their sales and promoting environmental sustainability. Simultaneously, our platform is designed to provide borrowers with a hassle-free and expeditious loan application process, which instils confidence and enables them to make a smooth transition to solar power. We take pride in offering customized solar lending solutions that are efficient and user-friendly for all stakeholders involved.

The 3 verticals, Automobiles, healthcare and solar installations can make a breakthrough in the lending industry, especially with its B2B2C model. Just like in B2B, this model allows for specialization by targeting providers and leverages the benefits of B2C to build a loyal customer base. If you're hesitant about taking a big step into this business, you can take advantage of our Embedded Lending Framework for free and explore your expertise in these verticals in just 60 seconds.
“Unleash the potential of your business with B2B2C - the ultimate fusion of B2B and B2C models.”